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tv   FOX Business After the Bell  FOX Business  March 29, 2013 4:00pm-5:00pm EDT

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with our service to you. we're thrilled to be here today. david: i would not have guessed wal-mart ranked so low on service. netflix, what a story. 100% in the last 12 months. liz: you dropped your account after that happened. david: you know i did. i got back in. they have got to be doing something right. today is a great day to take stock of all of these stocks in your portfolio and see, with you want to position yourselves,. we want you to take a closer look, at the smaller cap stocks. start with them. always focusing oo big cap. let's start with the smaller cap for now. that offer, big payouts. 40% of the companies in the russell 2000, those are the small and mid-sized caps. now pay at least some kind of a dividends. some of them much higher than bigger cap stocks. we have three small stocks with big upside potential for shareholders. liz: plus, what if you could have a nearly unbreakable smartphone screen. can not crack it, right?
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drop it on the concrete. no scratches, no cracks. right, you heard of gorilla glass? this is not it. they want to take on gorilla glass. they found a way to make the super hard substance using salve fires. the catch, it may make the phone a lot more expensive. will it be work it. david: it works. the stuff really works. stocks ending the first quarter in record territory with the dow and s&p hitting new all-time highs. will momentum on wall street continue or are we heading for some kind of a slowdown or pullback? liz: let's bring in our market panel live an living color. we have the chase investment council president. and jon augustine, fifth third bank market strategist. gentlemen, we have come off such an incredible quarter. frankly, the great year over the past year we've seen great rallies. let me start first. is there a chance this continues at least in the current new quarter? >> no.
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there is a chance that it continues, we think, liz. now we'll hear a lot about going in and out of april how the last three years the market has topped in april, right? we've seen corrections through the summer. but here's a an observation we see developing. we see stocks with a four-legged chair below. so number one, we see gdp growth moving forward. we see earnings moving forward. we see inflation relatively calm. and still see a very aggressive fed who basically has our back. so we have a four-legged stool moving into the new quarter. our stocks overbought? arguably, yes. but can they move forward. we're still in that camp, liz. david: peter let's be specific. we have earnings season coming up, a new round of earnings coming uu. if they are disappointing and there are some people saying that he will be disappointing. we'll see a selloff and do we get out before that happens?
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>> david, i think, i hate the use the word it depends. people kind of like the fourth quarter earnings season. people don't really have high hopes for the first-quarter earnings season. and i think earnings can be as dispointing but in the a disaster. and you would still see the market do reasonably well, for some of the reasons john mentioned. now, i think if earnings are truly disappointing, and the guidance going forward is, dismal, 10% correction as we've seen, in the last three years over the summertime? certainly possible. liz: jonathan, assuming that the four legs of that stool are remain income place, how would you allocate your portfolio? >> well, we still believe this is a momentum market. so as an example. you were talking about small caps. so small caps, mid-caps, domestic stocks in general and domestic real estate. so until those asset groups begin to wane or peter out,
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or begin to lose momentum, we think that's where the money keeps going, liz in a market this strong. so they're innocent until proven guilty in our view. liz: well, okay. david: peter, take a stock that has a terrific run-up, for example. johnson & johnson, for god, like three or four years was stuck at a level between 60 and $63 a share. it is now trading at $81 a share. actually 81.53 to be exact and they give that terrific dividend. over 3% right now. have we missed that run-up? having missed that run-up do we wait until there is a pullback there or even at 81.50 do we go in for it? >> i think if you have a two or three-year time horizon going into it now is not problematic. if you want a higher price in six months, you know may not happen. but it's trading at a market multiple and has, as you said a 3% yield. i would, you know, has potential for new products.
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it has the potential to split up into several companies, a la abbott. if you have a two or three-year time horizon i still think it is a good stock to purchase here. liz: those names along with john's names. john's names, general electric and unitedhealthcare, picking two dow components here. unitedhealthcare had a good day yesterday. they had a good month and good quarter. general electric, looking at where the up side is here. you can pick a growth exciting story. do either of those fit those parameters? >> well, they're special cases. now with the market that has run up, 10, 12%, depending which index you look at, we're looking a little more at stock picking. here are the special cases. you unitedhealthcare. you know all the money in the health care sector this year is arguably flowed into the hospitals, leaving the insurance providers somewhat behind, especially on a performance basis. that is where
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unitedhealthcare comes in. they will see more customers. they will see more revenue. they have to execute to make that profitable. general electric is a little bit different story. they're up about 10% this year, slightly behind the index but you have a management there, jeff immelt, who is trying his level best to extract shareholder value from those shares. so a little bit more special cases with more upside, perhaps on the pe side of the equation than on the eps side of the equation, i think, liz. liz: john, thank you. thanks to peter as well. david: thanks, gentlemen. have a great holiday weekend. appreciate it. liz: pain at the pump. at least we're below $4 a gallon in new jersey, david but the epa proposing new standards calling for cleaner gasoline. great for the environment but maybe not so great for your wallet. sometimes it is more expensive. how much could it end up costing you? we've got the details. david: also big payouts in a little package. small cap stocks are emerging as the next big
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dividend players with many of them sitting on large piles of cash, we have three names with big payout potential for stockholders. want to grab a pencil and paper. those names, coming right up. ♪ . we went out and asked people a simple question: how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thinthat hasn't changed: the official retirement age.
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david: peter arnes level in washington, d.c. trying to figure all that out. peter? >> that's right, david and liz, the epa says this proposal will clean up goose lien and car emissions, will load to better air and health. but higher gas prices. according to the agency, less than a penny a gallon but according to oil industry study, 62.9 cents a gallon more. epa will hold the public hearings on post-election proposal. administration official says of 111 refineries in the u.s., the standards will require major investment at 16 of them. 66 will require some modifications and 28 already meet the proposed standards.
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industry official says, this will affect all of the major refining companies, exxonmobil, bp, chevron. house republicans are upset about this. they say it is bad for the economy right now. they're planning to review it. critics and supporters battled over the economic impact. >> i'm doubtful that the rule would every be justified as on a cost benefit basis. that the actual benefits in public health outweigh the costs that imposed on the economy. >> this is kind of a game that people play in d.c. where, if you don't want to embark upon the required, necessary, investments in refining and infrastructure, you paint a doom and gloom scenario that, it is in excess of the what the actual costs are going to be. >> once the new rules are likely approved. they would take effect in 2017. david and liz? liz: we some time. thank you.
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david: for now, thank you very much, peter, have a good weekend. when you think of dividend stocks, most investors immediately think of big players like johnson & johnson. but now some of the smaller cap stocks have been getting into the game as well. what firms will most likely be next to announce bigger pay dais? how can you cash in on this? jack hough is baron's senior editor. we put together a stock screentory identify these for us. first of all, how did you do it? >> i look for, you know, attractive small companies with good dividend and potential for dividend growth. that is really important. i think investors have gone bonkers for dividends. the big companies are obliging them. s&p five 500 dividend think of small companies. piling all the money into growth. they shouldn't be paying dividends. bank of america did a study on this, they found dividend payers among small companies in the russell 2000, outperformed the nonpayers by five percentage points a year. this is myth that you shouldn't demand dividend from smaller companies.
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better to go after dividend. david: just by pointing out those small stock, smaller cap stocks that do give out dividend, 5% ahead of market. >> i think excellent time for that because investors are chasing after big companies paying dividends. that raised valuations. among the small companies, i think you have a chance to get better deals because investors are to the competing for dividend payers in that group. liz: we love stock screen, you can put in exactly what you looking for and tell us what names you put in? >> epic systems. they make software allows you to search legal documents. if you're not using a program to do that, using a team of junior lawyers who are lot more expensive. this company has lowered some legal costs for companies. they have good growth. more than 30% growth in operating revenue. dividend, high twos percentage, almost three%. good potential. david: a banking stock, northwest banking. the thing about this bank it operates in the region where
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the marcellus shale is. >>. david: all the companies making money off natural gas for marcellus shale are going to this bank. >> plent people look for mortgages. mortgage revenue is rising. regional banks are not most exciting companies out there, who wants exciting? i want money. >> this is a company with good steady growth. you have a big dividend yield of high almost 4%, whoa. >> decent chance for growth and really solid balance sheet. liz: the third pick was pretty interesting. it is fred's a general merchandise company. >> i will not rave about the performance. liz: i was going to say it is down 4% no every dollar comes into the register at fred's they two cents into operating profit. david: that is not very good. >> at cvs they turn a economic kel. at some of the dollar stores it is seven cents. freds is clearly underperformer. they're relocating stores. trying to turn things around the real story with fred's the potential to do things better. if current management can't
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do it, someone will. you buy it, the company is earning half what it should be if performing on par with its pierce. 17 times -- piers. sometime. it could double with a decent dividend. david: pulling back for a final moment, everybody knows about the big caps, johnson & johnson and others. it is this still undiscovered smaller caps giving dividends? >> i think that segment, everyone wants growth when they think small companies. some fast-growing small companies look expensive right now. no one goes after small companies for dividends. those look chief. liz: jack hough, on barrons.com? >> it is barrons.com you have to pay for that. >> you have to pay double. liz: thanks. david: thanks very much. jack. liz: sac capital executive,
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strasburg was arrested this morning we talk to a former sec lawyer and what it means for company and what it means for the investigation. david: scary. they still do the perp walks. what if you drop your phone on the concrete and avoid a cracked, scratched screen? one company is almost there. you will not believe what its using to make your phone nearly indestructible. we talked to the ceo. gt materials in a fox business exclusive. ♪ . [ kitt ] you know what's impressive?
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>> while cnbc is on tape we're open for business. david: what a day it was. sac capital michael steinburg was arrested at his apartment. look at this video. a real genuine perp walk. he is charged with insider trading. steinburg is a senior portfolio manager at sac. charged with securities fraud and four counts of securities fraud. liz: joining us, jacob frankel, former sec enforcement lawyer. jacob, let me get your thoughts how this went down. before light came up, they were out sighs his park avenue apartment, pulling him out, handcuffs the whole shooting match. what makes you think this changes the picture for the man who runs the entire company, steve cohen? >> this is throwback in perp walks to what we saw in the days of enron and worldcom.
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we haven't seen this as much in recent years because they have been allowing a lot of defendants in insider trading cases to turn themselves in. it is really about a production. the show, that the government wants to put on associated with the arrest. clearly charging michael steinberg brings the allegations closer to the doorstep of steve cohen but there is not yet any charges been leveled against mr. cohen either by the sec or by the department of justice. so at this point, you know there is still just a lot of turmoil, a lot of noise around them all they many people have fallen from his ranks. david: well, jacob, let me be specific. here is what the fbi says that he has done wrong and frankly gets into that whole question of how you define insider trading. a lot of people say it is too loosey-goosey. they really aren't specific enough. this is the fbi, the assistant director says
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quote, research by this company was nothing more than well-timed tips from an extensive network of well-sourced analysts. now a network of well sourced analysts. most investors are guided by well-sourced analysts that is pretty vague, is it not? >> well not only is it vague, if you read the indictment, in my view even though there may be five counts it is relatively thin indictment, because it doesn't tie mr. steinberg with any direction knowledge to specific, to substantive allegations that he actually knew that he was getting material, nonpublic information from someone who had a duty to maintain its confidentiality. but yes, i mean, as technology has improved, obviously the sophisticated tools available to traders to access quality information, is very much apart of how a hedge fund, how, how star traders do gain an advantage. and there is a, and what we're seeing is, sort of how
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there is a blurring of that, of that line in terms of where does it cross into insider trading? and, that's why we saw a lot of these cases involving expert networks. >> they are quite specific, part of as i quote, elite criminal club where he was virtually getting earnings reports before they were released on names like dell an nvidia. either way, let's bring it to what the feds really want, that is the steve cohen the head of sac capital because it would send a message according to the fed about insider trading. the question becomes the $602 million settlement we were expecting might be struck with the sec is that now in jeopardy? >> no. that settlement likely will, likely will stand because that is a case against the company. again, no charges against mr. cohen. and the, what i read that settlement, when it came out, to me it almost, almost
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telegraphed fact that they were a lot farther away from a case against mr. cohen than the department of justice around the sec would like for us to believe. david: jacob, final point. do you think the government will win its case or not? >> well they have won cases insider trading family, cases i don't think they should have won. this will be a very tough case for them because there are no tapes but, ultimately it will be up to 12 people sitting aing jurors. liz: from park avenue to prison, well jail. it is quite a dramatic perp walk. they're sending a message and our colleagues at journal got it and we're showing you the video and show the story on monday. david: thanks, jacob. appreciate it. liz: when you think of sapphires you think of jewelry, right, rings, princess diana? not smartphones. that may soon change as one company looks to make an indestructible phone screen using the material. sound great, right? well guess what? the rings themselves are so expensive could this end up
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costing a lot more for the phone and is it worth it? will you pay for it. no scratches. the ceo joins us, close sievely to -- exclusively to show us. david: how safe is your mobile phone? wait until you hear which is rated the best and worst from keeping your data from prying eyes r. r. i want to know exactly what i am investing in. i want to know exactly how much i'm paying. i want to use the same stuff the big guys use. find out why nine out of ten large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal.
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david: time for a quick speed read some of the day's
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other headlines, five stories in a minute. facebook getting a approval from the city of menlo park to build a second campus near its current silicon valley headquarters. the social media company says the new campus will allow it to add thousands more jobs. google is launching a same day delivery service in the san francisco bay area. shoppers that sign up will get six months of free same day online orders with retailers in the area. a a quarter of u.s. firms in china are victims of data theft. chamber of commerce and trade secrets were compromised and stolen from their china operations. toys "r" us is withdrawing the 800 million initial public offering. it filed it in may 2010. no explanation. diswas provided. new york is raising minimum wage. legislature approved $15 billion budget that included hiking pay from 7.25 an hour to $9 an hour by 2016.
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that is today's speed read [buzzer] liz: special good friday version. thank you very much. what if your next smartphone screen was nearly unbreakable, unscratchable? i'm talking really unbreakable? no scratches, no nicks, no cracks. one company is hoping to make that reality using sapphire instead of glass. the catch? it will maybe your cell phone a lot costlier and maybe heavier. hey you will save money, right. if you don't have to keep replacing it. tom gutierrez, ceo of ge -- gte advantagesed technologies. i have personally tested corning your competitor's gorilla glass. but you say this sapphire material made out of sapphires, there i am jumping all over it, the gorilla glass. sapphire will really do it even better. how can you know this? tell me what yours does. >> well, sapphire is the second hardest material on earth.
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it is only softer than diamonds. and, so we have run extensive testing ourselves. as a matter of fact i've got. phone that has got sapphire on it, a prototype and i can hit it with a rock. i can try to scratch it and not a single scratch. believe me, that if you gave me your cell phone i would put a nasty scratch on it with just a simple rock. liz: okay. all right. so how is this made? when you say sapphires, i'm thinking lady diana's engagement ring. what are you thinking? >> no. i'm thinking we have a method, we develop ad method of growing sapphire artificially. so we grow sapphires artificially. we cut it into the shapes that are necessary to make screens for it. as a matter of fact, our product, we make sapphire that is also used in the, in the manufacturing of leds. that is really where we started with our product and so it's a manufactured sapphire.
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used to be very expensive but through the process of we have introduced into the marketplace we made it reachable so that for an extra 10 to is a over the cogs of the phone as you -- $15 over the cost of the phone, we can have as you said a sapphire screen practically unbreakable or scratchable. liz: gorilla glass, $3. yours would be more like $30? >> that's incorrect. liz: okay. >> we believe first generation phones that will be adopted, it will be 10 to $15 more expensive. and as volume ramps that you will be able to to get below $10. we're working on a technique that would eventually get the cost on par with what the cost of gorilla glass is. and you have to remember that your consumers buy these very beautiful phones and then you spend hundreds of millions of dollars, $60 a pop to put an ugly cover
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on your phone in order to protect it. liz: just to keep it protected. >> so economics work. liz: fancy phone that we've heard about, they are made in england. they are high, high-end. you're in those. but what other contracts do you have? every time i talk to gorilla glass of corning they're in dozens and dozens, currently in more than 500 million phones that exist on planet earth. i would think you need a bigger contract, iphone or anything android? >> well, what we're working with many of the oe. ins. it hasn't really been adopted in the mass phone market yet. and so we're working with many of the oems now to design in the next generation screens. and the feedback that we're getting not only from consumers by also from the oems is that the price differential is, is okay to start with. and that obviously eventually we have to continue to bring the consist down but that the value of not having to put an ugly cover and spend $40
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on a polyethylene cover on it to keep it from scratching, the value will bring consumers to it. we validated that through focus groups. liz: tom gutierrez, gt advance technology, making screens that are virtually unbreakable and unscratchable, david, out of sapphire. thank you so much. we'll be watching. >> you're welcome. david: well, are you looking for the next big stock market play? who isn't, nowadays. we have an investment advisors who says keep an eye on generation-y. they're generation-y. they're known as echo boomers. coming up we'll tell you exactly how you can cash in on this booming new demo. liz: then, we'll tell you about a new startup that creates social campaigns for brands and turns their fans into advertisers. have you heard of champliy, we have the founders. why they ditched a white shoe firm for social media startup world.
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stay tuned. ♪
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>> i'm ashley webster with your fox business brief. ups agreed to pay $40 million to settle a federal investigation related to its work for online pharmacies. the shipping company will also make changes to block illicit online drug dealers from using their delivery service. our incomes rose in february and we found ways to spend it as well. personal incomes in february jumping 1.1% from january. that topped expectation for a .8% rise. personal spending also increasing by.77%. that is the biggest rise since september of 201. it also topped the .6% estimate. keep in mind that spending accounts for more than 2/3 of u.s. economic activity. and keep an eye on cisco systems when trading resumes on monday. the network equipment supplier raising its quarterly different by 21%
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[ male announcer ask your doctor if chantix is right for you. david: some investors looking to energy. some to the future of technology but what about looking to demographic trends for your next big investment idea? that is exactly what our next guest is doing. he is here to tell how to cash in on the echo boomers. we'll tell you about that in a second. joining us now, is charles sizemore. editor of the size moore investment --. echo boomers it was a new phrase to me. i hadn't heard it. correct me if i'm wrong these are people now in their 20s and 30s? >> you got it. everybody heard of baub by boomers were. everybody knows who the baby boomers were. a large generation born after world war ii. the highest birth years were late 1950s and early 1960s of the those had babies in the late '80s and early 1990s. that is why we call them
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echo boomers. an echo of the original baby boom. also known as generation-y. david: be specific about the character of these people. they're well-educated as we all know because they were put through very fancy colleges and universities but they don't have a lot of savings. and they also have a lot of debt. all of that education costs a lot of money. many of them are still in debt. so it doesn't seem on the surface to be a very appealing group of consumers. >> well right now they're not. if you look at them today, these are the people serving you your coffee at starbucks. by the end of this decade that guy or girl serving you coffee is going to be a mom or a dad. that is the real investment play here. the family formation of the echo boomers. you have to think ahead several years here. right like i said, these guys are just getting out of college right now. and they're not ideal consumers. they're heavily loaded with debt and they're young. they don't have high incomes riiht now. flash forward good five to
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seven years. this is the growth story. just as baby boom after world war ii. there was echo baby boom in the 1980 he is and very early 1990s. there will be another baby boom about 30 years later which puts it at the end of the decade. you have to look ahead with demographics. david: let's get to stocks you say will do well because of these people coming of age. >> sure. david: you say these stocks will have premium 5% over the overall market. tell us which stocks and why you think they will work with the echo boomers. >> you got it. what you have to do here, you have to think what's the next stage. and the next stage for these guys is marriage and family formation. think diapers, think baby formula. a nice portfolio to build here would be the baby formula makers such as abbott labs, maker of similac and mead johnson of the maker of infa mill. those are two great plays. another one to consider is bed, bath & beyond. bed, bath & beyond, their biggest competitor went out
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of business during the bust. they compete with everybody, wal-mart, target and every department store. they're the best play for linens, towels sheets, a sort of thing couple needs to buy when they get maried to start a family. those are great way to play it. diapers are a great way it play it. kimberly clark is the make you are of huggies second only to pampers. you could do proctor & gamble with, dot pampers plays a well. that is just a less-targeted play. that's a fantastic portfolio. now, i would, to be clear this is a slow-moving portfolio. i'm not telling you to go buy this today. you could have my on last month, have me on a month from now the story would be the same. this is 5 to 10-year play here taking advantage of the family formation of these echo boomers. david: all right. finally, charles, we got to move on because we don't have much time, you have to ask about technology in general because the one thing that does unite the echo boomers is a love of technology. they grew up with it. they have digital brains.
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not analog brains like i do. so they're focused on technologies. do you see a boom in tech stocks as a result of these people coming of age? >> well, we already have. a lot of the boom we've had in recent years with apple and google, what have you, a lot of that was due to young consumers. we already have seen it. i think we'll continue it see more. there is more variable there. there is a lot more moving parts. david: right. >> the pure demographic plays, things like formula and diapers, that is easy. that is simple. david: charles sizemore, the sizemore investment letter. thank you. >> thank you. liz: we can't forget the cyber threat. that is very much a reality. it may be in the palm of your own hand. a report from source fire, iphone users out there, all of you should be aware of security vulnerabilities many more than you might think. david: the funny thing which phones are more vulnerable than others. it may not be what you think. shibani joshi is on the
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story and she joins us with the details. >> you're absolutely right. i think what was surprising about this we all thought that the iphone was in a league of its own and wasn't vulnerable to malicious attacks but in fact this new study from source fire shows that in fact because it is a fast-growing platform, because everyone out there is buying the iphone that is exactly where the hackers want to be. here is what the study found. it found that 81% of vulnerabilities were attached to the iphone. it reduced down to 9% for the android. windows and blackberry came in with just more of a sliver of 6 to 4%. what you're looking at here, the top five web products. not just what is in your hands, what you're looking at, whether on the tablet or pc as wells. operating systems such as windows xp and wimed dose 2,000. big propagatetores of vulnerability and browsers chrome and firefox as well. companywide, well, they are a little bit more flagrant than others.
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we've got oracle coming in at the top of the list. that owns java. and java was a source for many of issues we saw with facebook and twitter and apple. list goes on and on. earlier on this year, hewlett-packard, ibm and mozilla round out the bunch. that being said i spoke to the guy who ran the study this morning and here is what he told me the vulnerabilities are different than actual attacks. the fact there is vulnerability the company can come in and patch it. that makes it safe. in fact about apple, the company said apple didn't focus very much on security when they first released the iphone. they have since made significant independent profits and -- improvements and can be considered the current market leader. if you're concerned about your phone, hackers and vulnerabilities are always something we need to be on the lookout for but apple is doing its best to defend against them. that is the big basic --. david: it is a closed system. you mentioned java. java is wide open. >> that is part of the problems we've been seeing this year. david: shibani joshi, great to see you. thank you very much. liz: thanks, shibani.
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david: they ditched goldman sachs. they raised $600,000. now they have developed a perfect platform to turn fans of products or artists into effective advertisers. it is called, jamplify. have you heard of this? you will. more than 150 brand have already signed on. the cofounders are joining us next. liz: plus the world car of the year. not just u.s.. david: the world? liz: yes. it has been named, david. the winner is it this one on your screen? david: geraldo likes it. liz: get very deep into this one on the prestigious reward. that is ahead on "after the bell." ♪ . we went out and asked people a simple question: how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed: the official retirement age. ♪
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liz: there are among the few who said good-bye to goldman sachs early in their careers, raised of00,000 in funding and found the perfect way for companies to get their fans to become their most effective advertisers. david: the company is called jamplify. it helps brand promote their products by rewarding fans who get the most people to check them out online. joining us are the cofounders of jamplify. gentlemen, great to see you. congratulations again. takes a lot of chutzpah to give up goldman sachs for a
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startup. but you did have 600,000. let's give the viewers a chance to figure out what i is you do. and there's an example of somebody named jasmine came to you and said help me. how did you help her? >> so jasmine wanted to promote youtube video which was her music video came out a month ago and came to jamplify, how do i get my fans to spread the word for this? she create ad campaign she was offering to the fan that drove the most other people to check out the video the outfit she was wearing in the video, autographed posters and autographed merchandise from her and fans came in and competed to drive other people to check out the video. 670 of those fans drove 190,000 people to check it out. liz: they were incentivized by treats, if you will that jasmine offered up through you guys, right? >> that's right. liz: how much do youucharge? >> yes, our business model, is subscription product. so we have three different pricing tiers. $50 a month, $100 a month and $500 a month.
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liz: jasmine paid you? >> yes. they can run campaigns throughout the course of the month to go after fans. david: 600,000 is sizable but i imagine you go through that money and need some more money. do you have a bunch of venture capitalists with more money willing to put in more? >> with $600,000 we can get a lot of work done. over the course of two years, our goal is to get cash flow positive on the $600,000. whatever money we raise after that we'll be adding. >> you're not worried about raising money right now. 600 is enough? >> 600 is enough. we left the round open for more. 600,000 is for us to get a work done and we're small team. liz: small team and lean. you're getting attention from some major names in music. brunl know mars used -- bruno mars, used you guys. 50 cent is gigantic in the industry. mostly music people working with you right now? where do you foresee this going? >> sure the we work with 150
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clients. platform is only alive for eight months. liz: what did you do for 50 cent for example? >> similar out come. david: can i stop you the fitty. liz: curtis for those of you who know him. >> you got it. promoting a new single and wanted to increase raid proplays for the single. he set up a similar campaign. difference in rewards his top promoter got a calendar shoot with 50 cent. 12 photos with 50 cent in the record studio. >> jam paign. >> that was a great promotion. that was great. >> moses you're not looking for money right now. i'm wondering what the rep is in social networking. facebook had so many problems when they issued the ipo. that soured the market on social networks but it has been coming back recently, hasn't it? >> elf d if you look a lot
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of statistics of cmos for brands and artists are doing better on social marketing and ramping up on social media. jamplify is way for brands to do better social marketing. that is what we see ourselves doing ephing the brand to be better. >> how tough was it for you to leave the frankly relatively cosi confines, hard work but coastsy confines of real platinum name for goldman sachs. >> it was tough decision. we had done enough work up to that point to make the right decision. we talked to our mentors and people we knew to make sure what we did was a value for us. we talked to a bunch labels, brands, agencies, and made sure there was demand for this to build and we thought this full time made a lot of sense. david: jamplify is the name of the company. don't we love startups?
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liz: gutsy. david: to leave a secure job at goldman sachs for a new venture. congratulations to both of you. >> thank you so much. >> happy holidays. david: one yankee player will be making more money than the entire houston astros team. liz: come on!. david: yes it is true. he is only playing half the season!. liz: oh come on. >> can you guess who it is? the answer is coming up. liz: more than 10 economic reports, 10, set to hit the tape next week we kicked off the second quarter. we have preview of data that could move your money. it is all coming up next. ♪ [ male announcer ] how could a luminous protein in jellyfish, impact life expectancy in the u.s., real estate in hong kong, and the optics industry in germany? at t. rowe price, we understand the connections
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♪ david: time to go "off the desk." a source bought for a lot of yankees. a big payday for alex rodriguez. topping the list as the highest-paid athlete in major league baseball. shaking your head. thirteenth consecutive season, he will break-in $29 million this year alone. here is the crazy part. he will be making more money this year than all of the houston astros players combined. and you will not even play the first half of the season. liz: also "off the desk", volkswagen golf named 2013 world car of the year. we tricky showing the bentley. david: i thought it was the
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bentley. liz: it won the 2013 world car of the year beating of finalists such as mercedes-benz and porsche to when the strategic award. we will be available in the u.s. sometime next year. david: geraldo still likes the bentley. yes, he does. time for the top three things to watch alter the weekend and from monday number three will be the march is in manufacturing in next. expecting the index to show all -- no change. liz: number two, february factory orders will be released on tuesday with economists expecting orders to rise just under 3 percent following a drawback in january of 2%. david: ladies and gentlemen, the number one thing to watch will be the march jobs report said to be released on friday. economists are expecting on foreign payrolls to rise by 200,000. the unemployment rate to remain steady at 77%. liz: we thank you so much for

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